The proposed brewpub in downtown Tecumseh has reached its goal of $175,000 for local investors. After securing a $200,000 loan from Onsted State Bank, Kyle DeWitt and Tim Schmidt, co-founders of the business, began seeking investors under Michigan’s new crowdfunding law. They reached their goal Thursday.

DeWitt said it feels great to have reached their goal.

“To get it done so quick was a surprise,” he said. “We feel good to have it done, that’s for sure.”

“We’re thrilled they are able to do this,” said Kevin Welch, Tecumseh city manager.

DeWitt and Schmidt have been working on the project for more than three years. They are the first company to take advantage of Michigan’s crowdfunding law. Crowdfunding enables individuals, local foundations and others to join community banks in investing in a local business. The Michigan plan allows people to invest money and be repaid with a dividend.

DeWitt said reaching their goal means the company is closed to more investors. He said the company does not want to take on more debt.

The brewpub will be in the former Cowboy’s Grill at 128 W. Chicago Blvd. DeWitt and Schmidt have started some remodeling work on the building, stripping it down to the bare walls. They hosted a pair of tasting events in April, which drew a great number of people and potential investors.

Chris Miller, Adrian economic development and downtown development authority director, said two accredited investors came through this week to put DeWitt and Schmidt to their goal. They had hoped to raise between $150,000 and $175,000.

“They had 90 days to reach their goal and they did it in 43,” Miller said. “They got 21 investors, mostly from the Tecumseh and Ann Arbor areas, but some from Adrian and other parts in the county.”

In a news release, Miller said more than 100 investors went online to view the details of the company, and many more had personal conversations with the company founders.

Michigan is only the fourth state to have a crowdfunding investment mechanism, and only the second state to accomplish this legislatively. Since passage of the measure, Maine and Indiana have passed crowdfunding measures, with Indiana’s modeled after Michigan’s. The Michigan law was spearheaded by Miller and sponsored by Rep. Nancy Jenkins, R-Clayton.

When she introduced the bill, Jenkins said she wanted to encourage more small businesses to open in Michigan.

“It’s great to see it do just that so soon after being signed into law,” Jenkins said in a news release.

“This is an exciting day for Kyle and Tim, as well as the Tecumseh Brewing Co. and all of Lenawee County,” she said. “New businesses like this bring new jobs, attract more tourism and bolster our entire economy.”

Page 2 of 2 - Schmidt and DeWitt managed the fundraising campaign on Localstake, an investment crowdfunding website that is the first such company to operate in Michigan under the Michigan Invests Locally Exemption program. Localstake co-founder Kevin Hitchen is pleased with the outcome.

“Tecumseh Brewing’s successful fundraising effort shows the impact that the new crowdfunding legislation can have on Michigan business,” he said. “Our vision is to make this success story a catalyst for many more Michigan companies to access the funding they need to start and grow.”

DeWitt said they are working to open in October when Tecumseh has its Appleumpkin Festival and Adrian has its Blues & Brews Festival.

Before then, they’ll have two more tasting events where people can check out the building, try some of their beers, sign up for their mug club and buy retail merchandise. The tastings are from 8 to 10 p.m. May 9 and 16. Space is limited, and DeWitt asked that people planning to attend email him at kyle@tecumsehbrewingco.com.

DeWitt said they expect to launch their website in the next week to 10 days. He said the best way for people to keep up with updates on the business’ progress is its Facebook page at www.facebook.com/TecumsehBrewingCo.

Once it opens, Tecumseh Brewing Co. is looking to have 15 to 24 beers on tap along with light snacks. Besides brewing on site, the brewpub will also have non-beer beverages available.